State PUC clears Zimride’s Lyft ridesharing app service to operate

The state Public Utilities Commission said Wednesday that it has reached an agreement with Zimride to allow the company’s Lyft ride-sharing service to operate while the state re-examines rules governing those type of controversial services.

The commission said that it was suspending a cease-and-desist notice and a $20,000 citation issued against Lyft last year, at least until the end of a six-month review process of current rules. Lyft uses a smart phone app to set up people needing a ride with drivers with room in their private cars, which are distinguished by a big pink mustache on the front.

“The terms of the agreement are intended to ensure the public safety of both riders and drivers through the CPUC’s interim oversight of Zimride during the rulemaking through safety requirements that include continued proof of insurance, Department of Motor Vehicle checks, and national criminal background checks,” a commission press release said.

The commission fined Lyft, Uber and SideCar for operating their alternative ride-sharing services illegally because they did not follow current public safety regulations governing commercial transportation services. Taxi drivers also complained those services were taking business away from them.

But in December, the commission opened a review period to examine whether new rules can be put in place that govern high-tech firms that use mobile communications and social networking to reach customers.

However, commission spokeswoman Terrie Prosper said the PUC has not reached any similar agreements so far with Uber and SideCar, so the citations and fines against those firms remain in effect.